Home / Crypto Currency / Indian Exchange Coinsecure Claims Insider Job in $3 Million Bitcoin Theft

Indian Exchange Coinsecure Claims Insider Job in $3 Million Bitcoin Theft


Coinsecure India Bitcoin

Advertisement

Join our community of 10 000 traders on Hacked.com for just $39 per month.

Indian bitcoin exchange Coinsecure has disclosed a theft of 438 bitcoins, valued at approx. $3.4 million at press time, from its wallet in what is the country’s biggest cryptocurrency theft to date.

Delhi-based cryptocurrency exchange Coinsecure has accused its own CSO of stealing the coins from the company’s wallet in an FIR (First Information Report) filed with the police on Thursday. In an announcement on its homepage, the exchange said some of its bitcoin funds had “been exposed” and “seem to have been siphoned out to an address” that is beyond its own control.

Coinsecure insists its own systems haven’t been compromised nor hacked. Instead, the exchange points to the unconvincing claim of its CSO, Amitabh Saxena, who contends the theft occurred during a separate “exercise to extract BTG (Bitcoin Gold)” to distribute among its customers.

Coinsecure wrote:

Our CSO, Dr. Amitabh Saxena, was extracting BTG and he claims that funds have been lost in the process during the extraction of the private keys.

According to the police complaint (pinned below), Coinsecure CEO Mohit Kalra, who holds the private keys for the company’s wallets along with the CSO wrote: “On 9th April 2018, we were informed by our CSO, DR. Amitabh Saxena, that 438.318 bitcoins (worth INR 19 Crores – Approx.) were stolen from our company’s bitcoin wallet due to some attack.”

Notably, he added in the complaint:

As the private keys are kept with Dr. Amitabh Saxena, we feel that he is making a false story to divert our attention and he might have a role to play in this entire incident. The incident reported by Dr. Amitabh Saxena does not seem convincing to us.

In a separate statement to the Times of India, the chief executive revealed that the private keys were exported online. “It looks like a crime committed intentionally,” he added. “We have shared our suspicions with the Cyber Cell and contacted specialists to find out the source of the hack and trace the bitcoins.”

Coinsecure recruited Saxena as its Chief Scientific Officer in September 2017, citing credentials as a professor of Computer Science in Australia and previous tenures at Hewlett Packard (HP) and Accenture. “Doc comes with an extremely strong understanding of the crypto space and has a lot of ideas and implementations that he will be bringing to Coinsecure,” the exchange said at the time, pointing to his scientific research articles on the blockchain space.

In his complaint, chief executive Kalra also stressed that the CSO might be a flight-risk, asking the police to seize his passport to keep him from flying out of the country.

Meanwhile, Coinsecure insists it will recover and reimburse customers who have seen their funds stolen.

The exchange said:

Irrespective of funds being recovered, we re-assure all our customers that you will be indemnified from our personal funds.

Coinsecure FIR Bitcoin Theft by CCN on Scribd

Featured image from Shutterstock.

Follow us on Telegram.
Advertisement
Read more

Check Also

Enjin Smart Wallet Updated to Support ERC-1155 and ERC-721 Data, Improves Game Asset Management

Although the gaming industry has been ever-evolving and advancing in recent years, players still face significant challenges when it comes to seeing, storing, receiving, sending, and protecting their in-game assets. Enjin Smart Wallet Collectible Update For those who aren’t already familiar, the Enjin Smart Wallet represents the world’s most advanced and secure cryptocurrency wallet thanks to innovative features such as fingerprint login, an intuitive user interface, and the ability to manage and monitor an unlimited number of blockchain addresses. In terms of security, the wallet relies on several advanced measures, including NSA-grade AES-256 encryption, hardware and RAM encryption, a keylogger-safe keyboard, Arm Compiler, and more. In an effort to enable frictionless game asset management, Enjin recently released a major update to its smart wallet, adding rich data and images to ERC-721 and ERC-1155 tokens. Players can now sovereignly manage their in-game assets and crypto collectibles in a decentralized fashion, along with more than 700 other cryptocurrencies supported by the wallet. With the “Collectible” update, the Enjin Wallet will initially support Gods Unchained, CryptoKitties, and War of Crypto game items, with additions from various industries to be introduced in the future. While ERC-721 tokens must be added to the wallet manually, ERC-1155 tokens utilize a different design standard that enables them to be automatically added to the wallet as soon as they are created in-game and provides players with a more frictionless experience. To celebrate the wallet update and recently announced Gaming Multiverse, Enjin is giving away multiverse items that will be usable across several games for all wallet users who register. Future Plans To date, nine games have adopted Enjin’s blockchain development platform and ERC-1155 standard for tokenizing in-game items, and Enjin shows no signs of slowing down anytime soon. The company has announced the future release of its blockchain explorer, EnjinX, which will effectively serve as an encyclopedia for virtual items stored on the blockchain. EnjinX will therefore allow users to view and verify the value and history of items by accessing stored data. Last but not least, Unity Technologies has announced plans to list the Blockchain SDK by Enjin on the front page of the Unity Asset Store. As the world’s largest game development platform, Unity will provide Enjin with exposure to 4.5 million developers that will be able to mint ERC-1155 tokens and use them to create advanced gameplay mechanics via the Ethereum network—all thanks to Enjin’s robust suite of blockchain development tools. This is a sponsored article and does not necessarily reflect the opinions or views held by any employees of NullTX. This is not investment, trading, or gambling advice. Always conduct your own independent research. The post Enjin Smart Wallet Updated to Support ERC-1155 and ERC-721 Data, Improves Game Asset Management appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.